Mahon Tribunal: Politicians were not the main reason for the failure of Mr Tom Gilmartin's plans to build a £100 million shopping centre at Bachelor's Walk, Dublin, the developer has conceded.
Under cross-examination from former Fianna Fáil TD Mr Liam Lawlor, Mr Gilmartin accepted that political "roadblocks" were not the main reason the project he was developing with an English property company, Arlington Securities, was abandoned.
He gave these reasons as: media publicity about Arlington's involvement, which led to an increase in property prices; and disagreements over a proposal to locate a bus station on the roof of the shopping centre.
However, Mr Gilmartin said the purchase price of properties Arlington sought to acquire on Bachelor's Walk increased up to five-fold overnight when their owners were tipped off about his plans to build the shopping centre.
He said "shadowy" figures made rival bids for "ridiculous" amounts in order to frustrate the project, with no intention of buying. They also encouraged owners to quote "extortionate" figures.
The price for one property went up from £270,000 to £1.5 million overnight after the purchase had been agreed, he said. A price of £600,000 had been agreed for the acquisition of the Abbey Mall, but this increased to over £1 million "practically overnight".
Somebody had approached the owner and advised him that a big investment company was coming in and needed the site, he said. "As a result, he doubled the price overnight. That was ransom." Mr Gilmartin said Arlington only wanted the building for its footprint; it was not commercially viable for the company to pay such a price when it would have to demolish and then construct a new building.
Likewise, the sale price of 7/8 Bachelor's Walk had doubled or tripled overnight, even though the contracts had been drawn up.
Mr Gilmartin said Arlington got involved with the plan for CIÉ to put a bus station on the roof. This was a "terrible mistake" and "pure nonsense". It would only be viable if the Government paid for it.
But according to Mr Lawlor, the Bachelor's Walk plan failed for commercial reasons. It wasn't about shadowy figures or gangsterism, "just people looking for too much for their properties".
After lengthy questioning by Mr Lawlor, Judge Alan Mahon intervened to say it was "pointless" for him to labour the point further. Mr Gilmartin was quite clear in saying that prices were being "hyped up" on Bachelor's Walk, but he was not saying that Mr Lawlor was responsible for this.
Earlier, the witness clashed with Mr Lawlor over his recollection of meetings with Dublin planners. Mr Lawlor claimed that Mr Gilmartin didn't know which planners worked for Dublin County Council and which worked for Dublin Corporation. "Mr Gilmartin has got his dates and meetings and people muddled and fuddled and duddled," Mr Lawlor said.
"If that's the best you can do to discredit me, then you've got some job on your hands," Mr Gilmartin replied.
"You've done that yourself outside the tribunal," Mr Lawlor replied.
At the end of yesterday's proceedings, Judge Mahon urged Mr Lawlor to deal with the matters "with a little more speed" and to address the specific allegations that had been made concerning him.
Mr Lawlor's cross-examination continues on Tuesday.
